Date for your Diary: 1st November 2018: New VAT changes for Site Staff and Service Charges

Her Majesty’s Revenue and Customs (HMRC) has recently issued new guidance regarding the payment of VAT on site based staff.

With effect from 1 November 2018 VAT must be added onto the costs of site staff collected through the service charge. Any site staff costs after this date must have a 20% VAT charge applied.

The HMRC guidance can be found here:

Revenue and Customs Brief 6 – VAT exemption for all domestic service charges.

Applying the correct VAT liability on residential domestic service charges (VAT Information Sheet 07/18).

Land and property (VAT Notice 742).

For more information please contact Yashmin Mistry on ymistry@jpclaw.co.uk or Tel: 0207 644 7294.